FloSports, a digital sports streaming service and media company based in Austin, Texas, underwent a series of layoffs on Monday, sources told Sports Business Chronicle.
The round of layoffs was relayed to employees at headquarters yesterday, with a FloSports spokesperson confirming to Sports Business Chronicle on Tuesday evening that layoffs totaled no more than 30.
“Cash is definitely tight,” said one source, adding that layoffs stretched across all departments.
Another source said that employees were told that certain positions weren’t aligned with revenue growth. In other words, some sports verticals weren’t performing well, the source said. At this time, it’s still unclear which sports weren’t trending in the right direction.
Layoffs were immediate, according to sources, with severance packages being offered to employees based on time spent with the company. Even with the layoffs, though, FloSports is still actively hiring.
Monday’s layoffs came around the same time the company announced a multi-year partnership with Fédération Internationale de Volleyball to carry matches live and on-demand via FloVolleyball.tv.
FloSports has concentrations in wrestling, track, gymnastics, volleyball and softball, among other verticals. Consumers can currently stream content for $19.99 or $29.99 a month — depending on the sport — or an annual payment of $150.
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Martin Floreani — Co-Founder and then-Chief Executive Officer — reportedly stepped down from his position in February.
In mid-August 2016, the company announced its most recent round of funding at $21.2 million. DCM Ventures and Bertelsmann Digital Media Investments led the financing. World Wrestling Entertainment (WWE) and Discovery Communications also participated in the round in addition to existing investor Causeway Media Partners. To date, FloSports has raised $32.2 million in funding, according to Crunchbase.